The UK’s car manufacturing industry has posted the third consecutive month of falling output in August, with a 12.9% decline compared with the same month in 2017.
A total 89,254 cars were produced in the UK in August, compared with 102,438 in August 2017. Across the year so far, a manufacturing output has fallen by 5.2%, meaning almost 57,000 fewer cars have been produced in the UK across the year so far, compared with the same period last year. This decline is greater than that for total car registrations in the UK, which has declined by 4.2% for the year so far.
The decline in manufacturing was driven by a sharp drop in local demand for UK-produced cars of 38.8%, with 16,721 cars built in the UK and being sold here, which represents 17.8% of August’s total new car registrations.
Cars built for export remained buoyant, with a comparatively modest 3.8% decline in August, and 72,983 cars leaving the country.
SMMT boss Mike Hawes pinned the decline to extra uncertainty around manufacturers’ summer shutdowns in their production plants, but added: “The quieter summer months are often subject to fluctuations due to the variable timing and duration of annual maintenance and re-tooling shutdowns. This instability was exacerbated in August, with the industry racing to recertify entire model ranges to meet tougher [emissions] testing standards in force on 1 September.
“With exports, the majority to the EU, continuing to drive demand, it underscores the importance of a Brexit agreement to safeguard this trade; for our sector, ‘no deal’ is not an option.”
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Symanski
Brexit killing British car industry.
Let's not kid ourselves. Brexit is going to do serious damage to the British car industry, just when it has several years of growth behind it. It's not the only industry that will suffer either, and not forgetting all the supporting component suppliers too.
Sure, the diesel problem hasn't helped, but that should have refocused buyers to petrol and that would have been it. So where did the domestic sales go? Simple; people are worried about the future and don't want to commit to a new purchase.
What is the future? Investment in UK factories is being diverted to EU factories instead. Why would a manufacturer make an investment here if they don't know how much extra shipping parts in and out of Britain is going to cost? They'd be mad not to make those decisions, and they're decisions which costs Britain revenue and jobs.
Those missed opportunities will see some plants scaled down and ultimately don't be surprised if some close too. Expansion will be the exception rather than the rule.
And for what? A lie from Boris that even Farage debunked on the morning of the result. An opportunity for the "few" Rees-Moggs to make millions at the expense of millions. And an opposition party lead by Corbyn which passively supports Brexit, even though the majority of their voters don't. Brexit is the UK shooting itself in both feet.
jason_recliner
Symanski wrote:
The idea is that organisations will have to manufacture more things in the UK if they want to sell them there at a competitive price, in turn crteating new jobs in the UK. They could choose to keep importing everything and try to sell at a higher price, start manuifacturing goods in the UK again, or pull out of one of the world's biggest markets completely. I don't know if Brexit will be successful in bringing jobs back to the UK, but I also don't know that it won't be successful. How can you be so sure?
One thing I do know - as an Australian, I'm envious of the UK and USA having the power and independence required to be able to trial some nationalistic initiatives. We could never do it here - the powers that be wouldn't allow it. I'm old enough to witness first hand the devastation that globalisation has brought on the working class here in Australia.
JimmyMac
Importing parts and materials
In theory, I can see your point but parts and materials will still need importing in order to make anything in the UK. If we mined, grew, pressed, forged or cast everything for ourselves and never needed to export the assembled product then we would be fine (again in theory but look at DPRK).
Brexit is at best and international embarrasment that will doepleat our status on the world political stage, leading to downgraded banking and military might; and at worst, years of industrial famine, lower wages and increased prices for all; except those with Channel Island bank accounts.
jason_recliner
JimmyMac wrote:
Yes, but each manufacturing stage adds value to the imported raw materials and other production inputs.
typos1
jason_recliner wrote:
The UK is too expensive for a lot of manufacturing, so manufacturing in the UK at a competitive price is a pipe dream. This is how captialism works - manufacturing moves to less developed/emerging countries with cheaper labour to a) increase profits and b) to reduce the prices companies sell goods for, I m not saying its right, but this is how it works, what will happen when all the countries in the world are developed I dont know, but your suggestion that companies will just have to manufacture here will not work. In the UK there are many essential jobs that the indigenous population feel are "beneath" them, so we use labour from EU countries with less strong economies, when we cannot do that we will be up sh*t creek - most of the people who voted for Brexit will not be falling over themselves to do these jobs.
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289
@ Symanski
Bullshit Symanski.
This is a BS non-news statement again to rattle the bars of those who voted remain, and destabilise the Brexit process....sponsored (again) by SMMT and JLR.
Only JLR are in difficulties....partly their own fault -(diesel reliance) and Chinese market decline are the drivers.
The Chinese market will effect other Luxury car manafacturers too.
I have seen no-one who needs to change their car delay their decision because of 'Brexit'. Cars have never been cheaper through PCP's which account for majority of all sales today.....mysteryx suggests that few people renew PCP's.....I dont know where he gets his information from, but he needs to change to a more reliable source! The buying public are addicted to the format and now that it is available on late used cars too it is firmly entrenched in buyers thought process. The younger generation see it as an extension of the format for smart phone purchase....a monthly rental. I dont see them feeling the need to 'own' a car in the future.
Mini are merely hedging their bets over possible delays in supply by bringing their annual break forward, and if Autocars reports are to be believed, will be shrinking the range and possibly building them elsewhere anyway.
Symanski
@289.
Personally, I'd trust what the car manufacturers are warning about more than your assertion. They know their business better than you or I.
But being in a company that exports good directly to customers in the EU, and knowing what it's like to sell to the likes of Norway, I'm familar with the extra barriers there are to trade. Currently none in the EU but if you opt for the Norway model, the one Brexiteers considered to be the best deal possible, there are barriers where you customer has to pay extra charges just to get your goods. They end up having to pay out twice just to buy from you once.
EU customers have a choice where to buy from and British companies won't be on the list after Brexit because of those extra barriers which will go up.
289
@ Symanski
....I am in the Industry Symanski, so this isnt an 'assertion' as you put it.
From a motor industry perspective (which given as this is the Autocar site we should be discussing), UK buyers also have a choice and are unlikely to buy German product with import duty added, so given the power of the German Industry in Europe, the EU are not in the position of strength they like to portray.
They are terrified that if they appear to be reasonable in negotiations with us - others will take our lead and follow. However the German Car Industry is not about to let the career 'jobs-worths' in Brussells destroy their fourth largest market.
Watch this space.
Symanski
@289
They'll certainly sell fewer of them, but you also have to consider that the UK is on a ration of 1:27 with the EU. So whilst the EU may lose a few sales to the UK there's still 27 other nations buying. But if those 27 countries stop buying as much from Britain who is the worst affected? Britain.
And that vacuum of British products will be filled with other EU products instead. So those German manufacturers may not be as badly affected as you would imagine. Only Britain loses out in this case.
Sure there's the argument that then Britain will have to produce more of it's own goods and products, and that may be true. Alas the modern car is very much built from parts sourced globally. Not forgetting that the development costs are also shared with global sales, and our biggest customer is the EU.
We are hurting businesses for this notion that we're "taking back control". Control of something that we never ever lost! There's no EU law been passed that the UK objects to as we had the power to not implement them. Then there's the "unelected EU commission", which is actually made up from the 28 member states putting forward their own representative and having our MEPs voting them in. Even the EU President is voted in to position by the people we've elected to represent us - our MEPs.
The more you look at Brexit and the reasons why, the more you realise it was all lies. Even Farage admitted this on the morning of the result!
typos1
Symanski wrote:
No, no, I realised it was all lies when I FIRST looked at it !
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